Shares surge on privatisation rumours

Dell in talks to go private

Rumours that Dell is in talks to go private have caused the vendor’s share price to soar by 13 per cent.

According to Channel News, the company is in talks with private equity firms Silver Lake Partners and TPG Capital and is negotiating for a leveraged buyout of $13 to $13 per share.

Although the talks are in preliminary stages, Bloomberg reports that a deal could be announced within the week. The deal would remove it from its listing on the stock exchange and remove a number of its obligations to minority share holders.

“They could generate a tremendous amount of cash for many years to come, or they could be more dramatic and invest heavily in a mobile strategy — and not be scrutinised by public investors every quarter while they did it,” said Needham & Co analyst, Rich Kugele.

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